On April 2, 2025, President Donald Trump declared a national emergency by imposing new import tariffs, including a 145% rate on goods from China. This led to immediate retaliatory measures from China, triggering a significant slowdown in trade and a sharp decline in stock markets, with the S&P 500 dropping by over 10% in just two days. The volatility of the situation caused investors to flee to safer assets, initially impacting cryptocurrencies as well. Bitcoin's price fell to around $76,000 but quickly rebounded to just under $85,000 as investors viewed it as a hedge against uncertainty. Conversely, traditional stock markets continued to struggle, with the S&P 500 down nearly 9% for the year. The impact of rising tariffs extended beyond financial markets, affecting supply chains in sectors such as electronics, automotive, and pharmaceuticals. Tariffs complicated the cost structure for manufacturers, causing potential increases in consumer prices. Experts warn of a slowing global economy and the ongoing reevaluation of supply chains by businesses as a result of the trade conflict. The long-term repercussions could reshape trade relations and reduce reliance on major players like the US and China.

Source 🔗